FAQs Certificate of Public Practice

Yes, although the particular circumstances and nature of the likely client contact, including whether that will take place at the client's premises or at alternative professional offices, are relevant considerations.

Acceptable scenarios in residential premises include those where:

    i. the office is located in a room with a door that can be shut during confidential conversations/meetings, with lockable storage for client's files and records; and

    ii. a) both the entrance and office separate from the remainder of the home; or

        b) the office is located near, or next to, the main entrance door; or

        c) all client meetings occur at the client's premises.

Most commonly this issue arises when members commence practice, but should also be considered whenever members choose to use their residence, a virtual office, or share office space with others. Such offices may be separate from, or used in combination with, traditional executive offices.

The primary issues to consider in relation to practices conducted from these offices are:

• Confidentiality of client discussions
• Security and confidentiality of documentation (hard copy and electronic) kept on the premises
• Maintenance of a professional image to clients.

It’s an additional qualification required by Chartered Accountants who are principals in public practice. The position titles they use may vary but what they all have in common is that they are principals of the firm. For example, this includes directors of corporate practices, partners in partnerships and trustees.

Factors to consider in determining whether you are a principal of a practice entity include whether:

• You have responsibility for the standard of professional work undertaken by the practice entity and management of the practice's activities, including: client selection and retention, determining the terms of the professional engagement, the type and quality of professional services provided, risk management, and the exercising of professional judgement in ethical and technical matters
• Your individual acts are binding on the practice or other principals of the practice
• You have the potential for personal liability for the practice's liabilities
• You have a role in the governance of the practice
• You have responsibility for signing off on professional engagements
• You are acknowledged in the PI policy of the practice as a person responsible for professional engagements
• You are promoted to clients and potential clients as the person responsible for professional engagements
• The perception of clients and suppliers of you is of a person who is able to bind the practice.

A principal, partner, director, officer or trustee of a related entity of the practice may also be considered to be a principal of a practice entity.

More information on who is required to hold a CPP can be found in Regulation 702.1 of the Member’s handbook.

Alternatively, you can ascertain whether you need a CPP by using the interactive guide ‘Do I need a CPP’.

Monitored member status is granted to a member who is:

• an Australian Financial Services Licence representative; or
• an Australian Financial Service Licence authorised representative; or
• a holder of a statutory registration who does not offer the services that are detailed in the registration?

You are asked to notify the Institute of your registration/licence. After this initial notification, we will ask for annual confirmation of your status in the membership subscription form.

For further assistance, contact the Institute's National Customer Service Centre.

If you intend to practice from a residential address, you must attach a floor plan to your CPP application.

No floor plan is required if you are not working from residential premises.

For further enquiries please contact the Chartered Accountants Service Centre on:

Phone Australia 1300 137 322 Overseas +61 2 9290 5660

Email service@charteredaccountants.com.au

If you are uncertain as to the acceptability of your arrangements please provide:

• A full description of the premises (this may include digital images)
• Floor plan (council plans are not required. Any diagrammatic representation of a floor plan which conveys the essential information is acceptable)
• Client contact arrangements
• Restrictions on access to client hard copy and/or electronic files.

Please submit any other information you consider relevant.
 

Chartered Accountants work within a co-regulatory environment, which means they are monitored by both regulators and the Institute. This helps to reinforce the Chartered Accountants brand and the integrity of members in the business community, not to mention the wider public. Members setting up in public practice are required to secure a CPP by undertaking the Public Practice Program (PPP) early on, and then renewing their CPP annually. The CPP obligations reinforce the Chartered Accountants brand and members based in mainland Australia can benefit from a limit on their liability under the Institute’s capping schemes.

For Australian residents the annual costs are a subscription of $550 and at least $45 for the PSC levy. The PSC levy varies dependent on the number of CPP holders in the practice. This is paid annually as part of the annual membership subscription process.

Start with the online questionnaire to determine whether you need to hold a CPP.  

Then:

1. Complete, or at least register, for the PPP. 
2. Obtain Professional Indemnity Insurance
3. Complete and submit your Certificate of Practice Form and a draft version of your proposed letterhead.

A standard application should be processed within 2-3 weeks. Special cases will take longer as more consideration is required, and potentially an interview.